PRINT

China: FOSUN COVID-19 Vaccine Project

SUMMARY

STATUS
Approved
MEMBER
China
SECTOR
Public Health
E&S CATEGORY
Category B
PROJECT NUMBER
000534

FINANCING

APPROVED FUNDING
USD100 million
FINANCING TYPE
Nonsovereign

TIMELINE

CONCEPT REVIEW
August 2021
FINANCING APPROVAL
August 26, 2021

OBJECTIVE

The Project aims to support an emergency response to the COVID-19 pandemic through the production and distribution of the COVID-19 vaccine and test kits.

DESCRIPTION

The Project involves Shanghai Fosun Pharmaceutical (Group) Co., Limited’s (Fosun Pharma) investments and capital expenditures related to COVID-19 products, including COVID-19 vaccines. The loan proceeds are expected to finance: (i) specific capital expenditure items of the COVID-19 vaccine supply plan, including setting up of cold chain logistics infrastructure, expansion and upgrade of manufacturing facilities for fill-finish and production of the COVID-19 vaccines, (ii) expansion of manufacturing facilities for COVID-19 test-kits, and (iii) working capital needs related to items (i) and (ii). The distribution and manufacturing of the COVID-19 vaccine, based on a licensing agreement with BioNTech, will be implemented in three stages: (i) Fosun Pharma will distribute the vaccine products imported from BioNTech through a network of provincial and local level cold chain warehousing and distribution facilities to vaccination points in China, (ii) Fosun Pharma will refine bulk vaccine materials from BioNTech into the final vaccine products at the existing Fosun Pharma manufacturing facility locations in China, then distribute them to vaccination points, and (iii) Fosun Pharma will form a joint venture with BioNTech to manufacture COVID-19 bulk materials and refine them into vaccine products in China and will distribute them to vaccination points.

ENVIRONMENTAL AND SOCIAL INFORMATION

Environmental and Social Policy (including Standards) and Categorization. The project is co-financed with IFC and has been prepared in accordance with IFC’s Sustainability Framework comprising of the Policy on Environmental and Social Sustainability, Performance Standards (PSs), and Access to Information Policy. To ensure a harmonized approach to addressing the environmental and social (ES) risks and impacts of the Project, and as permitted under AIIB’s Environmental and Social Policy (ESP), IFC’s PSs are applicable for this Project in lieu of AIIB’s ESP. AIIB has reviewed IFC PSs and is satisfied that: (i) it is consistent with AIIB’s Articles of Agreement and is materially consistent with AIIB’s ESP, including the Environmental and Social Exclusion List and relevant Environmental and Social Standards; and (ii) the monitoring procedures that are in place are appropriate for the Project. The Project has been assigned Category “B” in accordance with IFC PSs, which is equivalent to Category B if AIIB’s ESP were applicable, due to the potentially limited adverse ES risks and impacts, as well as Fosun Pharma’s robust ES management system.

Stakeholder Engagement, Consultation, and Information Disclosure. As per local regulatory requirements, all Fosun Pharma facilities during Environmental Impact Assessment (EIA) preparations, duly undertake public consultation activities to solicit and document potential stakeholder opinions about draft EIA reports and proposed mitigations. Fosun Pharma has been regularly publishing annual Corporate Social Responsibility reports as a key means to publicly disclose detailed ES performance information. An Environmental and Social Review Summary is disclosed on May 25, 2021, on IFC website.

Project-level Grievance Redress Mechanism (GRM). Local communities and other stakeholders can lodge grievances, if any, to each subsidiary or through a hotline set up by Fosun Pharma, or directly to the relevant local EHS regulatory body and to the city mayor hotline, as publicly communicated through their website. During facility construction and operation, security entry points at greenfield facility front gates will be the key public interfaces to receive external communications including grievances from the public if any. Fosun Pharma has developed and implemented standard operating procedures on receiving, documenting, and addressing any potential stakeholder grievances, and this includes maintenance of a log of all grievances received and addressed. Fosun Pharma will extend its existing stakeholder engagement and GRM procedures and requirements to all future activities related to the COVID-19 vaccine and test-kits, to ensure effective channels for stakeholders to submit potential grievances and effective resolution of grievances on time.

PROJECT TEAM LEADER

Asian Infrastructure Investment Bank

Taehwan Kim

Investment Operations Specialist – Health

taehwan.kim@aiib.org

BORROWER

Fosun Pharma

Zhou Lei

Treasury Head

zhoul@fosunpharma.com

PROJECT DOCUMENTS

Home Projects Project Summary Project List Project Details China: FOSUN COVID-19 Vaccine Project